IFC in Nepal

Nepal is a geographically diverse country with abundant resources and an ambitious development agenda. It has an annual per capita income of $735. Nepal is passing through a prolonged social and political transition.

Nepal is a priority country for IFC. Since 2008, IFC has been working closely with Nepal's private sector through investments and advisory services. To boost private sector growth, IFC works to promote private investment in infrastructure, tourism, financial markets, transportation, and trade finance. In recent years, IFC has also begun assisting the government to make doing business easier.

Catalyzing InvestmentShortage of electricity is a key concern for the private sector and a top economic concern nationwide. Through investment and technical advice, IFC has been helping unlock barriers for new infrastructure projects, particularly in hydropower, to help meet Nepal’s growing needs. IFC is also supporting aviation, agri-business and tourism sectors through advisory support and actual investments in both equity and debt. Nepal energy has been identified as a key area for support.IFC and IBRD are jointly working to deliver transformative hydropower projects in the short, medium and long term.

Improving the Enabling Environment for BusinessIFC works closely with the government of Nepal and the private sector to help improve the enabling environment for doing business. We support improvements in government-to-business services, business regulations and investment policies – such as cutting the time and cost of business registration and easing licensing processes. We also help identify and support transformative investment projects. IFC has helped the government of Nepal launch e-portal of licenses, and automate the Office of Company Registrar to make it easier to start a business.

We also work with regulators, private sector clients, and donors to support private sector growth through public-private platforms like the Nepal Business Forum, which has proven to be an effective tool to resolve most challenges faced by the private sector in a post conflict environment.

Supporting AgribusinessIFC has been supporting private sector firms and reach farmers through their supply chains to help them increase revenues and expand access to growth markets by strengthening their business and financial acumen and modern methodologies to enable them to adapt to climate change impacts.

Making Financing AvailableIFC invests in commercial banks and venture funds that provide loans to micro, small, and medium enterprises, which employ an estimated 1.75 million people and account for a fifth of the country’s GDP.

IFC advisory programs facilitate growth of small and medium enterprises in Nepal, helping enhance their financing options through a supportive financial infrastructure, including institutions, financial product development, and improved payment regulations. We also advise financial institutions on how to diversify their products for low-income households.